Mitsubishi to build SUV for Europe

TOKYO: Mitsubishi will begin production of a new sports- utility vehicle for the European market as early as June 1998, aiming to sell 4,000 of the vehicles monthly in Germany and other major European markets.

The manufacturer will work through Netherlands Car BV, a joint venture between Mitsubishi Motors and Sweden's AB Volvo.

To keep costs down, Mitsubishi Motors plans to use module parts as well as parts that are compatible with the Charisma, a compact car already being produced by Nedcar.

The new SUV, which will sport a minivan-type design, will be equipped with a Mitsubishi Motors' fuel-efficient, gasoline direct-injection (GDI) engine, which has been a strong selling point for the Charisma.

By 2000, Mitsubishi Motors hopes to increase total sales of its vehicles in Europe from the present 230,000 to 333,000 annually.